Let’s explore SAP S/4HANA On-premise vs Cloud vs Hybrid adoption model

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Learn the difference between SAP S/4HANA On-premise vs Cloud vs Hybrid models.

When you select a new enterprise resource planning (ERP) software, you need to be prepared to answer whether you need an on-premise ERP system or a cloud ERP.

Nowadays, cloud ERP Software has found a commonplace among businesses. You can find a Cloud ERP vendor almost everywhere since people are shifting on from on-premise ERP to cloud ERP altogether.

Nevertheless, we have plenty of reasons to explain why a small or medium size business isn’t going to choose an on-premise ERP system. When you think about the right choice of ERP system for your business, you need to have a final say depending upon the flexibility, budget and much more factors.

Let’s understand the difference between On-premise, Cloud and hosted on Cloud ERP system.

SAP S/4HANA Cloud| SAP Fiori app

On-premise vs Cloud vs Hybrid

On-premise ERP: You install this ERP system locally on your computer or server. It’s pricing comes under a single-time perpetual license fee depending on your organisation’s size with recurring fees for training, updates and support. It comes under capital expenditure where you make a large investment upfront. You might often require a third-party client for communication purpose between the on-premise software and a mobile device. You can customise the software as per your needs. This is the best option for larger enterprises looking for an option to secure their data. With an On-premise ERP, the client is directly responsible for the security factors. The implementation might take much more time in comparison to Cloud ERP.

Hybrid: During this deployment, you host the cloud software on your organisation’s private servers. The usage of hybrid cloud systems has increased multifolds from 19% to 57% in a single year.When you are dealing with a cloud hosted ERP, the provider takes care of your availability and uptime. Reviewing your vendor’s Service Level Agreement carefully can give you an idea about the uptime guarantee. Cloud based ERP offers you with automatic upgrades. Hence you can be less bothered about the time or the costs when you carry out the upgrades. But this might not be the case when your software is hosted on a cloud server. You need to know about details such as who will be performing the upgrades. Costs, authentication and data transmission.

Cloud ERP: This kind of software is hosted directly on your vendor’s servers, whereas it’s available for access on your web browser. It’s pricing comes under one-time perpetual license fee with recurring fees for training, support and updates. It comes under operational expense since it is an overhead cost you need to pay. Mobile communication becomes easier since there is no third-party involvement over here. You can access your data anywhere, anytime, through any system on cloud. This is well-suited for small and medium businesses with a comparatively lower budget, stability and accessibility requirements. In case of the cloud ERP, the security factors are handled by the vendors. The implementation time is less. It offers better uptime as well.

To sum it up

If you move on to SAP S/4HANA Cloud, it’s just like subscribing to Netflix on a monthly basis to binge-watch movies. But depending upon SAP S/4HANA On-premise Cloud is like building an app like Netflix, just to watch your favorite movies. It costs you huge amount of bucks, isn’t it?

Save your money and time with SAP S/4HANA Cloud migration techniques.

Do you want to learn more about SAP S/4HANA Cloud migration for your business?
Attend our 3-day cloud migration workshop. Our experts can simplify all the topics you need to know regarding cloud migration. We provide you with the most resourceful information you need regarding the topic, after analysing how it can help your business.

Register now!

FAQs

With SAP S/4HANA Cloud, you can reduce the cost and access your data anywhere, at anytime. Hence you need to consider S/4HANA Cloud.

SAP ECC to S/4HANA Cloud migration is a must since after 2025, SAP would cease to offer technical support to ECC users.

SAP S/4HANA Cloud offers your business with top security functions. SAP S/4HANA offers you the best security model in comparison to traditional ABAP applications.

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